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Today is our fearless leader Paul J Daly’s birthday! So we gave him the morning off and tapped in producer Nathan Southwick. We’re talking all about the new Canada and Mexico tariffs that put pressure on the automotive supply chains, plus the top depreciating cars and how Google is pushing to achieve artificial general intelligence.

Show Notes with links:

• The U.S. has enacted 25% tariffs on imports from Canada and Mexico, throwing the highly integrated North American production network into turmoil.
  • The tariffs, effective today, March 4, apply to all imports except Canadian energy products, which face a lower 10% duty. Canada and Mexico both responded with their own tariffs.
  • Industry experts predict vehicle prices could rise between $4,000 and $10,000, with Ford CEO Jim Farley cautioning that prolonged tariffs could "blow a hole in the U.S. industry that we have never seen."
  • Flavio Volpe, president of the Automotive Parts Manufacturers’ Association said that there is potential for U.S. and Canadian auto production to revert to "2020 pandemic-level idling and temporary layoffs within the week.”
  • Key auto models at risk include the Toyota RAV4, Ford Mustang Mach-E, Chevrolet Equinox and Blazer, and the Honda Civic and CR-V, while European automakers with manufacturing in Mexico, including Volkswagen, Stellantis, and BMW, saw their stocks drop sharply
  • The STOXX Europe 600 Automobiles and Parts index fell 3.8% and Continental AG, a major supplier, saw an 8.4% drop in shares.

• Used Tesla Model 3 and Model Y vehicles saw the steepest depreciation of any cars in 2024, according to Fast Company’s analysis of CarGurus data.
  • Model Y prices dropped 25.5%, while Model 3 prices fell 25% from January 2024 to January 2025.
  • Comparatively, the Nissan Maxima only dropped 5.2%, and the Ford Mustang declined 5%.
  • Full Top 10: Tesla Model Y, Tesla Model 3, Land Rover Range Rover, Jeep Wrangler 4xe, Chevrolet Express Cargo, Ford Transit Connect, RAM ProMaster, Land Rover Range Rover Sport, Chevrolet Bolt EV, and Ford Expedition, all with over 19% depreciation

• Google co-founder Sergey Brin is back and pushing Google DeepMind (GDM) teams to accelerate their progress toward Artificial General Intelligence (AGI). In a newly released memo, Brin outlines the urgency and expectations for Google’s AI teams.
  • Brin emphasizes the need for 60-hour work weeks, daily office attendance, and faster execution by prioritizing simple solutions, code efficiency, and small-scale experiments for faster iteration.
  • He calls for a shift away from “nanny products” and urges teams to “trust our users” more.
  • Brin, who has no formal role at Google beyond a board seat, stepped in o

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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